P2P

64 P E E R T O P E E R : I L T A ' S Q U A R T E R L Y M A G A Z I N E | W I N T E R 2 0 2 4 PSEUDONYMIZATION Definition: Pseudonymization replaces identifiable information with placeholders (e.g., tokens or codes) that allow controlled re-identification if necessary. Strengths Enhances data security by reducing exposure of identifiable information. Allows continued utility of the data for specific purposes while protecting privacy. Weaknesses Pseudonymized data is still considered personal data under GDPR and other regulations, requiring continued safeguards and eventual secure disposal. Organizations retaining pseudonymized data that is not legally necessary or operationally justifiable may still be found liable for non-compliance with data disposition requirements. ANONYMIZATION Definition: Anonymization involves irreversibly removing identifiers from data, ensuring it cannot be traced back to an individual. Strengths Can comply with regulatory frameworks' requirements for data disposition as it renders data non-personal. Allows organizations to continue to derive value from the data (e.g., anonymized data is well- suited for research or statistical purposes where the identity of individuals is not required). Weaknesses Certain jurisdictions, including those under the GDPR, mandate robust proof of irreversibility for anonymized data. Failure to meet these standards may result in anonymization being deemed insufficient to satisfy regulatory data disposal requirements. Improperly anonymized data can sometimes be re-identified through advanced techniques or by cross-referencing it with other datasets. As a result, anonymized data compromised in a data breach can still pose significant liability risks for the organization. W X W X

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